Natural Gas Price Forecast February 21, 2018, Technical Analysis

Natural gas markets have rallied a bit during the trading session on Tuesday, gaining 2 ½% as I record this video. At this point, volume is very thin, so I’m not overly impressed. What I need to see is some type of rally that fails so I can start shorting again. I have no interest in trying to buy this market and time some type of “dead cat bounce”, as it is a very dangerous thing to do in a market that is certainly very negative overall and leaving the most bullish time of year. I think that the $3.00 level above is going to be a massive barrier, and I believe that sellers will jump into the market near that region if we can get some type of bounce. If we go higher than that, that’s even better, I’m willing to short with an even larger position above.

The alternate scenario is that we break down below the $2.60 level, then I think we go down to the $2.50 level. The key here is that I have no interest in buying and believe that natural gas markets are going to continue to be pummeled by the oversupply of natural gas in the United States, and of course the demand falling as to better start to warm up in America. The temperatures have broken above 70°F in parts of the northeastern part of the United States over the last couple days, which will have demand falling from a cliff. Ultimately, I think that the market is one that you can sell repeatedly, but you must get the opportunity to do so after rallies.

NATGAS Video 21.02.18